Bob Daniels manages an auto dealership€™s service department. The recent month€™s income statement for his department follows.
(1) Analyze the items on the income statement and identify those that definitely should be included on a performance report used to evaluate Daniels€™s performance. List them and explain why you chose them.
(2) List and explain the items that should definitely be excluded.
(3) List the items that are not definitely included or excluded and explain why they fall into thatcategory.

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Sales of parts. Sales of services... 210,000 $354.000 Costs and expenses Cost of parts sold... Building depreclation. Income taxes allocated to department 60,000 Payroll taxes.... Supplies... Total costs and expenses Departmental net Income 223.800 $130.200